Question
Danica, Ltd. Just paid a dividend of $3 per share. You think the company will pay $3 per year for the next four years. After
Danica, Ltd. Just paid a dividend of $3 per share. You think the company will pay $3 per year for the next four years. After that, you think dividends will grow at 2% a year indefinitely. If the appropriate discount rate is 10%, how much should the price of a share be?
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Personal Finance Building Your Future
Authors: Robert Walker, Kristy Walker
2nd Edition
0077861728, 9780077861728
